Good morning. Donald Trump threatens universal levies while slapping higher tariffs on Canada. Heathrow plans a £10 billion upgrade. And the original Birkin bag fetches €8.58 million at auction. Listen to the day’s top stories.

President Trump threatened Canada with a 35% tariff and floated the idea of universal levies. He spent the week sending missives to trading partners, with letters to members of the EU also expected shortly. And in Brazil, President Luiz Inacio Lula da Silva insisted his country could survive without US trade and would look elsewhere. 

Trump also told NBC News he’ll be making a “major statement” on Russia on Monday, as America prepares to send more weapons to Ukraine. Earlier, Ukrainian President Volodymyr Zelenskiy said a meeting with allies in Rome stoked optimism that the US will ramp up military aid to the country, including air defense. 

London Heathrow Airport plans to invest £10 billion over the next five years to upgrade its terminals and services after the hub slipped in global airport rankings. The proposal involves redesigning terminals, improving punctuality through AI tools and reducing its carbon footprint. In case you missed it, here’s the official report of what caused the massive power outage at the airport earlier this year. 

The UK’s plan to significantly expand its fleet of fighter jets is poised to cost £71 billion over the next four decades, more than triple the original estimates, according to Britain’s spending watchdog. The push to modernize and expand the airforce with Lockheed Martin’s advanced warplanes has been stymied by delays, staffing shortages and a lack of adequate infrastructure. 

Citadel Securities bought Morgan Stanley’s unit focused on electronic market-making for US equity options, expanding the firm’s already dominant role in the popular derivatives, according to people familiar. Here’s an explainer about retail trading. 

Deep Dive: Santander’s Rising Star

Javier Garcia-Carranza Photographer: Javier Vazquez/Santander

A year ago, Ana Botin caused ripples inside Banco Santander when she tapped Javier Garcia-Carranza to lead the Spanish lender’s staid-but-stable wealth, asset management and insurance unit.

• The ex-Morgan Stanley real-estate investment banker was seen by some as having a limited background in the businesses he’d been put in charge of, according to people familiar.
• But since arriving in 2016, his star had risen within the bank and he was seen as one of Botin’s keenest allies, the people said.
• He’s now pushing through sweeping change: ousting managers, slashing costs and overhauling traditional ways of working in pursuit of higher fees and a drive to make the unit a mightier force within the retail and corporate-banking giant. 
• Read more about the reorganization of leadership roles at the wealth unit, as well as how the bank has tapped private bankers to target clients in Miami and Mexico.  

The Big Take

Listen to the Big Take Podcast. 

Opinion

Only an army could end Iran’s nuclear program, James Stavridis writes. Obliterating Tehran’s threat would require an operation on the scale of the 2003 Iraq invasion. An overwhelming military option may be needed someday, but for now let’s see what we can accomplish at the bargaining table.

Before You Go

Jane Birkin in London. Photographer: Mike Daines/Shutterstock/Shutterstock Editorial

The original Hermès Birkin bag sold for a record €8.58 million at a Sotheby’s auction in Paris to a Tokyo-based company. It was made for Jane Birkin some 40 years ago after she and the company’s CEO sketched it out during a flight.

Pope Leo XIV’s childhood home in Dolton, Illinois, sold for $375,000 to the village, a 70% premium over the initial asking price. The property will be turned into a landmark.

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